Huntington National Bank 2009 Annual Report Download - page 95

(1) We
igh
te
d
avera
g
e
yi
e
ld
s were ca
l
cu
l
ate
d
us
i
n
g
amort
i
ze
d
cost on a
f
u
lly
-taxa
bl
e equ
i
va
l
ent
b
as
i
s, assum
-
in
g
a3
5
% tax rate.
D
eclines in the fair value of available for sale investment securities are recorded as temporar
y
i
mpa
i
rment, noncre
di
t OTTI, or cre
di
t OTTI a
dj
ustments.
Temporar
y
impairment ad
j
ustments are recorded when the fair value of a securit
y
fluctuates from it
s
hi
stor
i
ca
l
cost. Temporar
yi
mpa
i
rment a
dj
ustments are recor
d
e
di
n accumu
l
ate
d
OCI, an
d
t
h
ere
f
ore, re
d
uce
s
equ
i
t
y
. Temporar
yi
mpa
i
rment a
dj
ustments
d
o not
i
mpact net
i
ncome or r
i
s
k
-
b
ase
d
cap
i
ta
l
. A recover
y
o
f
ava
il
a
bl
e
f
or sa
l
e secur
i
t
y
pr
i
ces a
l
so
i
s recor
d
e
d
as an a
dj
ustment to OCI
f
or secur
i
t
i
es t
h
at are temporar
ily
impaired, and results in an increase to equit
y.
Because the available for sale securities
p
ortfolio is recorded at fair value, the conclusion as to whether
an investment decline is other-than-temporaril
y
impaired, does not si
g
nificantl
y
impact our equit
y
position as
t
h
e amount o
f
temporar
y
a
dj
ustment
h
as a
l
rea
dy b
een re
fl
ecte
di
n accumu
l
ate
d
ot
h
er compre
h
ens
i
ve
i
ncome/
loss. A recover
y
in the value of an other-than-temporaril
y
impaired securit
y
is recorded as additional interest
income over the remainin
g
life of the securit
y.
G
i
ven t
h
e cont
i
nue
ddi
srupt
i
on
i
nt
h
e
fi
nanc
i
a
l
mar
k
ets, we ma
yb
e requ
i
re
d
to reco
g
n
i
ze a
ddi
t
i
ona
l
cre
dit
OTTI losses in future
p
eriods with res
p
ect to our available for sale investment securities
p
ortfolio. The amoun
t
an
d
t
i
m
i
n
g
o
f
an
y
a
ddi
t
i
ona
l
cre
di
t OTTI w
ill d
epen
d
on t
h
e
d
ec
li
ne
i
nt
h
eun
d
er
lyi
n
g
cas
hfl
ows o
f
t
he
secur
i
t
i
es. I
f
our
i
ntent re
g
ar
di
n
g
t
h
e
d
ec
i
s
i
on to
h
o
ld
temporar
ily i
mpa
i
re
d
secur
i
t
i
es c
h
an
g
es
i
n
f
utur
e
periods, we ma
y
be required to record noncredit OTTI, which will ne
g
ativel
y
impact our earnin
g
s.
Al
t-A, Poo
l
e
d
-Trust-Pre
f
erre
d
,an
d
Private-La
b
e
l
CMO Securitie
s
Our t
h
ree
hi
g
h
est r
i
s
k
segments o
f
our
i
nvestment port
f
o
li
o are t
h
eA
l
t-A mortgage
b
ac
k
e
d
, poo
l
e
d
-trust
-
pre
f
erre
d
,an
d
pr
i
vate-
l
a
b
e
l
CMO port
f
o
li
os. T
h
eA
l
t-A mort
g
a
g
e
b
ac
k
e
d
secur
i
t
i
es an
d
poo
l
e
d
-trust-pre
f
erre
d
securities are located within the asset-backed securities portfolio. The performance of the underl
y
in
g
securitie
s
in each of these se
g
ments continues to reflect the economic environment. Each of these securities in these
t
h
ree se
g
ments
i
ssu
bj
ecte
d
to a r
ig
orous rev
i
ew o
f
t
h
e
i
r pro
j
ecte
d
cas
hfl
ows. T
h
ese rev
i
ews are supporte
d
w
i
t
h
ana
ly
s
i
s
f
rom
i
n
d
epen
d
ent t
hi
r
d
part
i
es
.
(
See t
h
e “Investment Securities” section
l
ocate
d
wit
h
in t
he
“Critical Accounting Policies and Use o
f
Signi
f
icant Estimates” section
f
or additional in
f
ormation)
.
The followin
g
table presents the credit ratin
g
s for our Alt-A, pooled-trust-preferred, and private label
CMO securities as of December 31
,
2009
:
Table 39 — Credit Ratin
g
s of Selected Investment Securities
(
1
)
Am
o
rt
i
z
ed
C
ost Fair Value AAA AA +
/
⫺A+
/
⫺
BBB +
/
⫺
G
BB
B
⫺
A
vera
g
e
C
red
i
t Rat
i
n
g
o
f
Fa
i
r Value Amoun
t
(
In millions
)
Private label CMO securities . .
$
534.4
$
477.3
$
39.0
$
21.6
$
35.6
$
92.1
$
289.0
Alt-A mort
g
a
g
e-backe
d
secur
i
t
i
es
..............
13
6
.1 11
6
.
9
23.1 2
6
.
9
——
66
.
9
Poo
l
e
d
-trust-
p
re
f
erre
d
securities
..............
241.8 106.1 — 24.4 — 29.2 52.
5
Total at December
31, 2009
...
$
912.3
$
700.3
$
62.1
$
72.9
$
35.6
$
121.3
$
408.
4
Tota
l
at Decem
b
er 31
,
200
8
....
$
1
,
327.4
$
987.5
$
390.6
$
84.4
$
174.1
$
49.7
$
288.
7
(1) Cre
di
t rat
i
n
g
sre
fl
ect t
h
e
l
owest current rat
i
n
g
ass
ig
ne
dby
a nat
i
ona
lly
reco
g
n
i
ze
d
cre
di
t rat
i
n
g
a
g
enc
y.
Ne
g
at
i
ve c
h
an
g
es to t
h
ea
b
ove cre
di
t rat
i
n
g
s wou
ld g
enera
lly
resu
l
t
i
nan
i
ncrease o
f
our r
i
s
k
-we
igh
te
d
assets, w
hi
c
h
cou
ld
resu
l
t
i
nare
d
uct
i
on to our re
g
u
l
ator
y
cap
i
ta
l
rat
i
os.
87